Tax planning is not automatically the right investment for every client.
In this older Financial Clarity conversation with Hannah Smolinski, I explained that there is a cost-benefit point advisors need to consider.
If a client owes around $2,000 in taxes and professional planning costs roughly the same amount, there may not be enough financial benefit to justify the engagement.
But the equation can look very different for higher-income clients with larger tax liabilities.
At Meyer Tax, we would sometimes identify around $100,000 a year in estimated tax savings for a client.
Then we would show the fee alongside that opportunity.
If the engagement was priced at $20,000 or $30,000, the client could clearly see the potential return on the investment.
That is how I prefer to think about tax planning.
The goal is not simply to sell another service.
The goal is to help the client understand whether the potential financial benefit justifies what they are investing.
That cost-benefit analysis is also a major part of how I think about value pricing and the ROI Method.
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Jackie Meyer, Dr Jackie Meyer, Financial Clarity podcast, Hannah Smolinski, tax planning, tax savings, tax strategy, tax advisory, tax advisor, ROI Method, value pricing, CPA, accounting, accountant, tax professional, CPA firm, accounting firm, pricing strategy, cost benefit analysis, return on investment, firm growth, advisory services, client value #short
